Mitsui E&P Australia (MEPAU) and Joint Venture partner Beach Energy have celebrated the official launch of the construction of the Waitsia Gas Project Stage 2 in Western Australia, by turning the first soil at the site.

Waitsia Stage 2 unlocks the economic potential of the Mid West and will create opportunities for the local community and local businesses.

Clough was awarded the Engineering, Procurement and Construction (EPC) scope for the project at the start of 2021, while the bulk earthworks scope was recently awarded to Garla Barna Civil & Mining (GBCM), a local Mid West Indigenous business. There will be further local works packages announced as the construction phase ramps up.

Waitsia Stage 2 is creating 200 jobs during construction and will incur an expected expenditure in the local area of $15 million per year during the operations phase. Production from Waitsia Stage 2 is expected to commence in the second half of 2023.

Natural gas from Stage 2 will add to the domestic supplies already flowing to Perth and the South West from Waitsia Stage 1. Along with supplying gas to the domestic market, Stage 2 will also provide energy supplies to the world by exporting natural gas through the North West Shelf LNG facility.

MEPAU has also recently announced agreements with the Japan Oil, Gas and Metals National Corporation (JOGMEC) and with Wesfarmers Chemicals, Energy & Fertilisers Limited (WesCEF) as part of a collaborative and flexible approach to rapid decarbonisation. These agreements will support studies into carbon storage and low carbon ammonia production.

Ken Yamamura, Managing Director and Chief Executive Officer, Mitsui E&P Australia said MEPAU is committed to a long-term partnership with the people and businesses of the Mid West region.

“Waitsia Stage 2 has and will continue to unlock significant economic opportunities for the Mid West region and Western Australia,” he said.

Matt Kay, Managing Director and Chief Executive Officer, Beach Energy said the construction of the Waitsia Gas Project Stage 2 is great news for local jobs, the local economy and for the domestic supply of natural gas to Western Australia.

“Beach Energy is proud to be a partner in this project, and we look forward to the commissioning of the new gas plant in 2023.”